Major Applications of Blockchain Technology — Part One

The term “Blockchain” is applicable to any network in which information is recorded by numerous untrusted members, and the blocks are chained together by a proof. As a result, this technology has fundamentally challenged and changed the world of business. By reducing the need for any central institutions such as banks, this technology grants full control of financial affairs to ordinary people.
A new form of trade that is known as ‘pull transactions’ has been formed which has created a lot of enthusiasm; an enthusiasm that is certainly due to high hopes that specialists have for applications of blockchains. Some of the most brilliant thinkers of the computer science world go so far to call blockchain technology The Magic Beanstalk. Some of these applications are as follows:

• International Payments
  In blockchain technology information is shared in the format of blocks; it is very fast and transparent; it can be supervised and verified by everyone; due to its immutable nature, blockchain technology provides a great alternative for current slow, risky and expensive cross-border transactions and global payments.
• Peer to Peer Transactions
  Naturally, when you attempt to move money internationally, you have to use a mediator which is probably going to be a bank or a FinTech company, but with blockchain technology, this transfer is peer to peer, and the mediators can be easily excluded.
• Auditing
  The secure and immutable nature of the blockchain technology has facilitated macro auditing for users (even the case owner cannot edit anything within this technology). Banks and other big Payment Service Providers -through which people perform their online digital transactions- protect their clients’ account information against hackers by using client-server infrastructures. To achieve that, they spend billions of dollars to protect their clients’ information. Likewise, any online transaction system is responsible for the protection of their clients’ information.
  After all, the same information that we share with banks, we share with businesses too. However, since all online businesses are vulnerable to attacks or hacks, the safety of sensitive financial information is always in jeopardy. By contrast, Blockchain improves security, mitigates fraud and automates the process of auditing. Therefore, a permitted blockchain with some restrictions in accessing sensitive data will bring cost efficiencies for auditing.
• Financial Agreements, Payments, and Taxes
  Sometimes in the stock market, we hear the phrase T+3. This phrase means that a Transaction (T) will be finalized in three days. There are ways to speed up this process but they come with security risks. With blockchain technology, a transaction is immediately finalized, so we would have a T+0 settlement date. The transparent nature of blockchain reduces the chances of error in the tax payment process to its lowest level if not zero
• Insurance
  Sometimes individuals and companies buy several insurance policies from different companies, and then fraudulently create a self-made damage claim, attempting to earning illegitimate profits. The nature of blockchain is set up in such a way that any recording information is done uniquely. By simple coding, it can become unrepeatable too. So, no ‘natural’ or ‘legal person’ would be able to commit fraud.
• Preventing Money Laundry
  If receivers and senders have unique addresses in the blockchain, all identity verification standards (KYC) and anti-money laundering regulations (AML) can be applied in which case there will be a very secure and fast anti-money laundering system. By combining and integrating accurate and valid identity verification blockchains with blockchain payment systems, the best supervision and transparency will be applied to such transactions. On the other hand, blockchain is able to encrypt legal settings.
  In other words, the verification process and function of blocks in blockchain can be a translation of legal governmental processes into digital codes. For example, regarding the banks, this leads to an increase in the efficiency of anti-money laundering situations. Blockchain can be set to take different responsibilities. For example, allowing a transaction to take place or according to regulations that are applied to it, we send the report of the transactions that have taken place to the responsible people. This enables the banks to automatically process their transactions or their transaction reports.
• The Supply Chain Management
  A blockchain makes the history of transactions traceable. The supply chain management can take advantage of this feature in tracking the goods from manufacture to sale in a decentralized way and with any number of participants. Since there are many people in different time zones and places involved in the supply chain, the blockchain, due to its decentralization nature, makes a global supply chain operating system possible, it also reduces human errors, makes the recording data more accurate and scalability easier.
  Medical Care Sex, age, height, and other personal characteristics, along with the latest examinations, medical diagnosis, etc., can be stored in a blockchain. When necessary, with permission from the concerned individual or anyone responsible for them, the doctor, without needing any mediator organization and thus without wasting time, can access necessary information. This happens without any time or places restrictions. Using this method, the doctor can access medical records and thus make a better diagnosis which eventually leads to better treatment.

• Read more applications in part Two…